Contact Us
For NRI Customers
(To Buy a Policy)
(If you're our existing customer)
For Online Policy Purchase
(New and Ongoing Applications)
Branch Locator
For Existing Customers
(Issued Policy)
Fund Performance Check
Login
Customers
Employees
Partner
- Money Back Policy
- What is a Money Back Policy?
- How Does Money Back Policy Work?
- Why Do I Need a Money Back Policy?
- What are the Key Features of the Money Back Policy?
- How to Choose the Best Money Back Policy?
- Who Should Buy a Money Back Plan?
- Eligibility Criteria for Buying a Money Back Policy
- Documents Required to Buy a Money Back Policy
- Why Buy a Money Back Plan from HDFC Life Insurance?
- Money Back Policies Offered by HDFC Life
- Benefits of Buying Money Back Plan from HDFC Life Insurance
- FAQs
- Here's all you should know
- Popular Searches
- Disclaimer
-
100% Guaranteed1 returns
-
Save tax2 up to 46,500/-
-
Life cover
:1800-266-9777
Francis Rodrigues
Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.
Written By:
What is a Money Back Policy?
Money back policy provides the opportunity to invest and grow your wealth along with financial protection through life cover. Money back plans offer payouts (survival benefits)at predefined intervals during the policy term. At the end of policy term, money back plans provide maturity benefit or death benefit on the demise of the insured.
How Does Money Back Policy Work?
Money back policy is a form of life insurance that offers both investment and protection. Here is a breakdown of how a money back plan works:
Premium Payment
Just like any other life insurance plan the policyholder must pay fixed premiums in regular intervals to keep the policy active.
Regular Payouts
As the name suggests money back policy offers regular payouts known as survival benefits during the policy term. The payouts are a pre-determined percentage of the sum assured and are paid at pre-defined intervals during the policy term.
Maturity Benefit
On survival of the policy term the policyholder receives a guaranteed maturity benefit. Maturity benefitsinclude accrued bonuses (revisionary or terminal bonuses) as per declaration by insurance company.
Death benefit
In case of an unfortunate event of the insured’s demise during the policy term, the nominee receives the sum assured (death benefit), regardless of any periodic pay-outs already paid.
Here is an example to help you understand better:
Let’s break this down with an example of how a money back policy works:
Suppose you purchase a money back plan with:
- Sum assured of ₹50 lakhs
- Policy term of 25 years
- Survival benefit of 20% of the sum assured paid every five years
Here is what the payout timeline looks like:
Survival benefits
- 5th year – ₹10 lakhs
- 10th year – ₹10 lakhs
- 15th year – ₹10 lakhs
- 20th year – ₹10 lakhs
Maturity benefit
Death benefit
You will receive ₹10 lakhs every 5 years as part of the guaranteed money back plan:
These timely payouts can help with EMIs, school fees, or any planned expenses, just like a refund policy designed around your life events.
By the end of the 25th year, you will receive the rest 20% (₹10 lakhs) as a maturity benefit and any applicable bonuses. This final guaranteed amount serves as a reward for remaining invested.
In a scenario of the policyholder's unfortunate death during the policy term, the nominee will get the complete ₹50 lakhs irrespective of the survival benefits already paid out. This ensures complete money-back assurance for your loved ones when they need it most.
Why Do I Need a Money Back Policy?
Money back policy offers a combination of life insurance coverage and investment plan. If your goals are more about security, stability and structured savings, a money back policy is one of the best life insurance plans. Let’s understand as to why you should opt for a money back plan:
Dual benefits of insurance and investment
Life coverage :
Guaranteed returns :
This provides financial protection to your loved ones in case of your untimely demise. The death benefit (sum assured) will help your family avoid any financial stress due to your absence. The sum assured is paid out irrespective of the payouts received.
It provides guaranteed returns in form of regular payouts (survival benefits) for a predefined duration and maturity benefit at the end of the policy term. For example, in HDFC Life Click 2 Achieve(UIN: 101N186V06) the policyholder can choose amount of the survival benefit at inception of the plan.
Regular income
Low risk option
Personalised features for your milestones
Tax Advantages
Disciplined savings
Regular payouts act as a secondary income source to meet short-term financial goals and expenses such as children’s school fees, home loan EMI, healthcare expenses, vacations etc. The periodic payouts also help maintain liquidity with access to funds before the maturity of the policy.
If the ups and downs of the stock market make you uneasy, the money back policy plan offers a welcome sense of calm. A money back plan is a low-risk and capital-protected product.
Your returns are assured, not impacted by market ups and downs and backed by the insurer. All these features make it a solid choice for risk-averse individuals who prioritise financial safety over aggressive growth.
One size does not fit all—and that’s the beauty of a money return policy. You can customise the plan depending on your life stage, goals or savings horizon. Wanting to plan out for your child’s higher education? Zero in on a child-focused plan with payouts timed around school or college milestones. Are you approaching retirement?
The Smart Student variant of HDFC Life Click 2 Achieve is designed to cater to child’s educational needs. With this plan you have the flexibility to choose the at age at which your child’s income begins, either at 16 or 18 years.
Premiums paid towards a money back policy are eligible for tax deduction under Section 80C* of the Income Tax Act, 1961. Along with this, the payouts – both maturity and death benefits can be exempt from tax under Section 10(10D) of the Income Tax Act, 1961*, subject to prevailing tax conditions. This makes money back policy an efficient choice from both protection and tax point of view.
With the need to pay regular premiums, money back policy encourages disciplined savings over the policy term.
What are the Key Features of the Money Back Policy?
Guaranteed Returns
With a money back plan in hand, you do not have to worry about when and how much you will get. Survival benefits are paid at pre-determined intervals—usually every 5 years—as a fixed percentage of your sum assured. This ensures predictable income to support short-term financial goals or ongoing expenditures.
...Read More
Life Coverage
Life insurance comes built in. If something unfortunate occurs during the policy term, your nominee receives the whole sum assured even if some periodic payouts have already been made. That is the dual advantage—protection + payout.
...Read More
Bonus and Additions
Money back policies allow reversionary bonuses (declared annually) and terminal bonuses (paid at maturity time). These depend on the performance of the insurance company. But they can enhance your final payout considerably over a long time.
...Read More
Flexibility
Select how you want to pay—may it be monthly, quarterly, half-yearly or yearly—based on your flow of income. This makes the policy accessible whether you are salaried, self-employed or operating a household.
...Read More
Regular Pay-outs
Every few years (typically every 5), a portion of your sum assured is returned as a survival benefit. This acts as a steady cash flow to better manage planned expenditures with zero need for you to dip into your savings or investments.
...Read More
Survival Benefit
Such payouts are generally 20% of the sum assured, disbursed at periodic intervals (for example, 5th, 10th, 15th and 20th year in a 25-year policy). Best for managing out EMIs, tuition fees or yearly commitments.
...Read More
Maturity Benefit
Towards the end of the policy term, if you survive the complete duration, you will get the remaining sum assured (often 20%) plus any bonuses accrued over the years—a prudent boost for goals.
...Read More
Death Benefit
Rest assured, your family’s financial future is safeguarded. Even if you have received some payouts during the policy term, the full sum assured is paid out in the event of your unfortunate demise.
...Read More
Guaranteed Surrender Value
Need to exit early? You will still get something back. After a certain lock-in period, you are eligible for a guaranteed surrender value—a defined portion of the premiums you have paid. While early surrender reduces total returns, it ensures your money isn’t lost.
...Read More
Add-on Riders
Want additional protection? You can enhance your cover with riders—critical illness, accidental death or waiver of premium. These optional add-ons make your policy more robust, customised to your health and lifestyle.
...Read More
Tax savings
Premiums that you pay qualify for tax deduction as per Section 80C of the Income Tax Act, 1961*. Payouts (on maturity or death) are tax-free as per Section 10(10D) of the Income Tax Act, 1961, which is subject to policy conditions. It is a win-win for both protection and financial efficiency.
...Read More
How to Choose the Best Money Back Policy?
Not sure about which money back policy matches you well? Please fret not—here is a stepwise guide to assist you in making a smart and confident decision:
Define your Financial goals
Start with the “why.” Are you planning for your child’s education? A policy with payouts timed around school or college milestones might just be the right fit. Want funds every few years for some other life events—weddings or travel? Choose a money back plan with periodic payouts that line up well with those milestones. Your goals should dictate the policy’s structure.
...Read More
Understand your Coverage Needs
Your sum assured should match your lifestyle needs, so that your family shouldn’t have to compromise on the quality of life in your absence. Calculate your ideal sum assured by considering your family’s monthly expenses, existing liabilities (like home loans), and inflation. Note that the policy must safeguard your loved ones and endow great mental peace.
...Read More
Select the right Policy term
The longer the term, the better for long-term savings. Shorter terms may offer quicker returns but less compounding, while longer terms suit long-term family security and wealth creation. Always check out policy documents for maturity clauses and exclusions—no one likes surprises later!
...Read More
Evaluate Premium affordability
Pick a premium you can comfortably pay, month after month. As a rule of thumb: "Insurance should support your goals, not strain your budget." Missed premiums may reduce benefits or cause a policy lapse.
...Read More
Consider Add-on Riders*
Riders are the optional benefits that you can add onto your policy to enhance your coverage. Look out for critical illness, accidental death or waiver of premium riders. These enhance your base plan. Just check rider costs—they vary across insurers.
...Read More
Claim settlement ratio
Claim settlement ratio is the percentage of claims your insurer has settled. Look for 95% or higher. It means the insurer is reliable when your family needs them the most.
...Read More
Understand Policy Exclusions
It’s crucial to know that not everything is covered in the base plan. Common exclusions may include suicide within the first year or non-disclosure of health issues. Always go through the fine print in the policy brochure or online documents to avoid being swayed by marketing without understanding the limitations.
...Read More
Inquire About Additional Benefits
Ask your insurer about bonus payouts (like loyalty additions or reversionary bonuses) and how they can boost the final maturity value or protection level. These can add significant value to your policy over time.
...Read More
Who Should Buy a Money Back Plan?
Wondering if a money back policy is right for you? Here's who stands to benefit the most:
Individuals looking for financial security
If you want guaranteed returns plus insurance coverage.
Goal-focused savers
It is best if you are saving for life events like education, weddings or a down payment for your dream home.
Low-risk investors
If you are someone who prefers stability and predictable returns over market-linked volatility, the money back policy is the perfect fit for you.
Retirees seeking stability
Money back policy would be a smart choice if you are looking for a steady income stream post your retirement to manage expenses.
Long-term planners
Money back plans perfectly suited for disciplined savers who think 10-25 years ahead and want a structured savings approach.
Tax-smart investors
If you are looking out to save tax under Section 80C* and 10(10D) of the Income Tax Act, 1961*, money back policy can be beneficial to you.
Those seeking Peace of mind
If emotional and financial security matter more than high-risk returns.
Eligibility Criteria for Buying a Money Back Policy
Thinking about getting a money back policy? Great choice! But first, here is what you require knowing to find out if you qualify:
Age limit:
Entry age ranges anywhere between 18 and 65 years. However, this may differ slightly based on the insurer.
...Read More
Income:
You must have a stable and verifiable income source to ensure timely premium payments, which is important for maintaining policy benefits.
...Read More
Policy term:
Most plans offer terms in between 10 and 25 years. The policy must mature before the insurer’s maximum age limit (generally around 75 years).
Always check out specific guidelines & brochures to figure out the plan that matches your profile perfectly!
...Read More
Documents Required to Buy a Money Back Policy
Getting started is very easy! Here is what you must make sure to keep handy:
Age proof: PAN, Aadhaar, Driving Licence or Passport
Address proof: Aadhaar, Passport or Driving Licence
Proof of income:
- For Salaried individuals: Latest salary slips, bank statements or Income Tax Returns (ITR)/Form 16
- For Self-employed individuals: ITRs (of the previous two years), audited financials or bank statements
Medical reports: Doctor’s prescriptions and lab test reports (if required, based on age or sum assured)
Application form: Duly filled and signed application form as prescribed by the money back policy.
Why Buy a Money Back Plan from HDFC Life Insurance?
Thinking of securing your future while getting regular payouts? Here's why thousands trust HDFC Life for their money-back plans — and why it might be the smart move for you too:
Fast claim processing
Expert guidance – Absolutely free
No hidden charges
Genuine, spam-free calls
Tax benefits that save you more
No delays, no stress. HDFC Life processes claims efficiently with a Claim Settlement Ratio of 99.68% for FY24-25##, because your family’s peace of mind shouldn’t wait.
Confused between plans? Don’t worry! You get access to trained insurance experts — zero cost, no pressure — who help you choose what’s truly right for your goals.
What you see is exactly what you pay. With transparent pricing as well as no fine-print deductions, you can plan out your finances with utter confidence.
Tired of pesky insurance calls? HDFC Life ensures all calls are recorded, spam-free, and secure, so your conversations stay respectful and reliable.
Enjoy tax savings as per Section 80C of the Income Tax Act, 1961* on your premiums and potential tax-free maturity benefits as Section 10(10D) of the Income Tax Act, 1961 — all while remaining financially protected.
Benefits of Buying Money Back Plan from HDFC Life Insurance
When you avail a money-back plan from HDFC Life Insurance, you can enjoy assured advantages, including:
- No commission fees
- Access to expert advice at no additional cost
- Transparent process with no hidden charges
- Genuine transactions without any spam calls and all phone call conversations from HDFC are recorded for 100% transparency.
- The reliability of an insurer with a death claim settlement ratio of 99.68%##.
FAQs on Money Back Policy
What is a money back policy?
A money-back policy is a life insurance plan that offers periodic returns in the course of the policy term, along with a lump sum on maturity. It even offers life cover to protect your loved ones.
Which is the best money back policy?
The best policy depends on your financial goals, payout needs, and risk appetite. Plans from reputed insurers like HDFC Life offer high claim settlement ratios and customizable features.
What are the features of a money back policy?
Key features are regular survival benefits, life cover, maturity payout, optional riders and tax benefits. It blends well with investment and protection.
What are the advantages of a money back policy?
You avail assured payouts at intervals, life insurance protection and tax-saving benefits — all in one plan. It is best for those in need of liquidity as well as security.
Is money back policy taxable?
No, the returns are tax-free under Section 10(10D) of the Income Tax Act, 1961* if premiums are within the specified limits. Premiums are also deductible under Section 80C of the Income Tax Act, 1961*.
Is it risky to invest in a money back policy?
Not at all. It is looked upon as low-risk as payouts are assured by the insurer and come with life cover.
Is there a penalty if I do not pay my premium for the money back policy on time?
Yes. Missing out on premiums can result in policy lapse or reduced benefits. Some insurers may offer a grace period as well as revival options.
Who is most suitable to buy a money back policy?
It suits risk-averse individuals really well. Also, it is a good choice for goal-based savers and those looking for family protection with periodic returns.
What are the riders available in a money back policy?
Common riders are accidental death, critical illness, waiver of premium and hospitalisation — enhancing thorough cover.
Can I revive my money back policy?
Yes. Most insurers permit policy revival within a specific period by paying missed premiums.
How do I surrender my money back policy?
You can surrender your policy after completing the lock-in (generally 2-3 years) by submitting a surrender request to your insurance provider.
How frequently am I required to pay the premium for a money back policy?
Premiums can be paid on a monthly, quarterly, half-yearly or annual basis based on your preference and the insurer's options.
What happens if I fail to pay my money back policy premium on time?
Your policy might enter a grace period or become paid-up. Continued non-payment could result in lapse or lowered benefits.
Is a money back policy a good investment?
Yes. In case you are looking for assured returns, life cover, and tax savings, it is a prudent choice for financial stability as well as risk management.
How do I transfer my money back policy?
While you can’t “transfer” policies like a bank account, you can change nomination details or update servicing branches by contacting your insurer.
How are returns calculated on your money back policies?
Returns are survival benefits, maturity amount and bonuses (if applicable). Your policy document or illustration shows these in detail.
Here's all you should know about Saving Investments.
We help you to make informed insurance decisions for a lifetime.
Popular Searches
- term insurance plan
- savings plan
- ulip plan
- retirement plans
- health plans
- child insurance plans
- group insurance plans
- personal accident insurance
- saral jeevan bima yojana
- income tax calculator
- pension calculator
- bmi calculator
- compound interest calculator
- term insurance calculator
- tax saving investement options
- best investment plans
- benefits of term insurance calculator
- what is term insurance
- why to invest in life insurance
- Ulip Vs Mutual Fund
- tax planning for salaried employees
- how to choose best child insurance plan
- 1 crore term insurance
- HRA Calculator
- Savings Calculator
- Gratuity Calculator
- critical illness insurance
- Whole Life Insurance
- types of life insurance
- types of term insurance
- Benefits of Life Insurance
- Endowment Policy
- Term Insurance for NRI
- Term Insurance for Women
- Term Insurance for Self Employed
- life insurance
- life insurance policy
- Benefits of Health Insurance
- Health Insurance for Senior Citizens
- Health Insurance for NRI
- Saving Schemes
- Ulip for NRI
- Life Insurance for NRI
- Investment Plans for NRI
- Retirement Planning
- Retirement Calculator
- Child Education Planner
1. Guaranteed Benefit is paid on survival during policy term provided all due premiums are paid during the premium payment term.
2. Tax benefits are subject to conditions specified u/s 80C and u/s 10(10D) and other provisions of the Income Tax Act, 1961. Tax Laws are subject to change from time to time.
3. This applies to Income Variant, whereby guaranteed income is paid on survival of Life Assured during the policy term, provided all due premiums are paid during the premium payment term
HDFC Life Sanchay Plus (UIN:101N134V26) is a non-participating, non-linked savings insurance plan.
HDFC Life Sanchay Fixed Maturity Plan (UIN:101N142V08) is a Non-Linked, Non-Participating, Individual, Savings, Life Insurance Plan. Life Insurance Coverage is available in this product.
##Individual death claim settlement ratio by number of policies as per audited annual statistics for FY 2024 -25.
^. Save 46,800 on taxes if the insurance premium amount is Rs.1.5 lakh per annum and you are a Regular Individual, Fall under 30% income tax slab having taxable income less than Rs. 50 lakh and Opt for Old tax regime.
* Tax benefits & exemptions are subject to the conditions of the Income Tax Act, 1961 and its provisions.Tax Laws are subject to change from time to time.Customer is requested to seek tax advice from his Chartered Accountant or personal tax advisor with respect to his personal tax liabilities under the Income-tax law.
## Individual claim settlement ratio by number of policies as per audited annual statistics for FY 24-25
HDFC Life Sanchay Plus (101N134V26) is an individual non-participating, non-linked savings life insurance plan.
HDFC LifeClick 2 Achieve (101N186V06) is an individual non-participating, non-linked savings life insurance plan
ARN - ED/07/25/25480
